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Buying a home isnt akin to buying, say, a handful of penny stocks.
Its wildly more expensive, and you have to have a comfortably generous budget to cover basic costs.
Dont get in over your head, financially.
Factor in more than just the purchase price but also repairs, maintenance, taxes and unexpected vacancies.
Location can make or break your real estate investment.
These factors attract tenants and ensure steady rental demand.
Dont limit yourself to where you live.
Ignoring these can lead to fines or legal trouble.
Look for landlord-friendly states to protect you from tenants who may pose a problem.
Thorough screening reduces the risk of late payments, evictions or property damage, Geransar said.
The Tax Implications
Bear in mind that rental income, like any other income, is taxable.
Whatever you get in rent, youll have to pay taxes on.
Fortunately, you do havesome tax advantageshere, but none that will remove the tax burden entirely.
In addition, ensure you get extra umbrella coverage and lost rent coverage.
double-check you understand what is being covered.
Additionally, you oughta protect not only your rental property investment by insuring it but yourself as the landlord.
It can also help with court fees or lost rent.
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